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Responsible Natural Gas Development

Responsible Natural Gas Development

The American Gas Association (AGA) believes that the benefits of developing the abundant and clean natural gas energy resource in America can and should be realized. We also believe it can be developed in a responsible manner. Over the past several years a truly game-changing event has occurred in the natural gas industry thanks to improved technologies that are allowing energy producers to access significant and growing supplies of domestic natural gas from shale formations and other unconventional reservoirs.

The Natural Gas Subcommittee of the Secretary of Energy Advisory Board ( SEAB ) issued its final report on November 17, 2011, calling for immediate implementation of 20 recommendations for air, water and community impact management.

The completion practices required to produce natural gas, specifically from shale formations, have attracted considerable attention in both the media and public policy circles. Safe and reliable extraction, transport and delivery of natural gas to consumers remain the first priority for all natural gas industry participants. AGA has developed principles that address a foundation for the sustainable and responsible development of all natural gas resources in our country and underscore the commitment of local natural gas utilities to the communities they serve.

American Petroleum Institute (API) hosted an excellent workshop in Pittsburgh - the heart of the Marcellus Shale play -- for representatives of industry, environmental groups, and state regulators regarding technologies, policies and regulatory initiatives that can help reduce the impact of shale gas production on communities and the environment while facilitating access to this vast supply of U.S. energy that has helped make energy cleaner and more affordable in recent years. Below are presentations from the workshop.

When calculating savings in energy cost from using natural gas appliances and considering conservation and efficiency efforts, some analysts simply multiply the average cost per unit of energy times the energy savings. This method of determination is inappropriate because only a part of the natural gas energy cost should be considered in this calculation. The marginal costs should be considered when calculating the impact of conservation efforts, which tend to happen, at the margin of user consumption.